If 1 Billion XRP Unlocked from Ripple Escrow Wallet Pushes Price Lower, it would be “Catastrophic”
- $225,092,030 USD cost only 0.05 XRP or $0.011on XRP Ledger
- XRP Price on “thin ice”
- Yes, it’s that time of the month again.
Ripple has released 1 billion XRP worth $225,092,030 USD from its escrow wallet. This transaction on the XRP Ledger cost only 0.05 XRP that is just $0.011 as fees.
🔓 🔓 🔓 🔓 🔓 🔓 🔓 🔓 🔓 🔓 1,000,000,000 #XRP (225,092,032 USD) unlocked from escrow at Ripple Escrow wallet
— Whale Alert (@whale_alert) December 1, 2019
55% of the total XRP supply, 55 billion XRP are locked in the escrow account of the company that is based on the XRP Ledger. Ripple clarifies:
“The escrow consists of independent on ledger escrows that release a total of one billion XRP each month over the next 55 months. This provides an upper limit on the amount of new XRP that can be brought into circulation,” clarifies Ripple.
This transaction has renewed the XRP community’s fear of the digital asset’s price.
However, in its Q3 2019 market report, while tackling the dumping allegations, Ripple said the large movements of XRP that are the basis of “dumping’ allegations are the transfers between Ripple treasury and escrow management accounts. These transfers he said doesn't entail Ripple distributing XRP.
Ripple CEO Brad Garlingouse also said that Ripple can’t control the digital asset’s price any more than the whale can control the price of BTC. Also, the company has decreased its XRP sales by volume quarter on quarter, pushing its inflation rate lower than that of Bitcoin and Ether.
XRP Price on “Thin Ice”
The third-largest cryptocurrency recently dropped $0.20 level which was not only the lowest price recorded by XRP but also a level last seen in October 2017.
Among the top cryptocurrencies, in November XRP was also the biggest loser with over 25% drop in value. The digital currency is still down 93.45% from its all-time high of $3.40.
According to crypto analyst Magic Poop Cannon, XRP can very well crash another 85% from its current trading level $0.22, to $0.03. That situation would arise if Bitcoin falls to the 1,000 range.
While I love XRP (and I do believe that it is superior to all other cryptocurrencies) if BTC falls to the 1000 range as I'm currently anticipating, I think XRP could simultaneously fall to 0.03. I hate to report that, but that's what the charts suggest, if BTC falls to 1000.
— MAGIC (@MagicPoopCannon) November 28, 2019
In his detailed analysis, Magic explains that he could be wrong because of the similarities between the current XRP price chart and that of late 2016 and early 2017 which suggests it “may be just at the point of launch.”
Also, with rising support level for momentum showing sell-side pressure falling over time, a bullish picture can be seen in the digital asset’s near future.
XRP, Magic says on “thin ice” and if price deviates to the downside, he says it could be “catastrophic” for its price. If the price begins to fall, a lot of investors will make an exit and breaking down below $0.195 level means greater chances of XRP testing $0.15.